A study of the changes in the volume of fresh fruits and vegetables handled by middlemen operating in the Chicago South Water Market, 1938-1949

Citation preview

NORTHWESTERN UNIVERSITY LIBRARY Manuscript Theses

Unpublished theses submitted for the Master's and Doctor's degrees and deposited in the Northwestern University Library are open for inspection, but are to be used only with due regard to the rights of the authors. Biblio­ graphical references may be noted, but passages may be copied only with the permission of the authors, and proper credit must be given in subsequent written or published work. Extensive copying or publication of the thesis in whole or in part requires also the consent of the Dean of the Graduate School of Northwestern University. Theses may be reproduced on microfilm for use in place of the manuscript itself provided the rules listed above are strictly adhered to and the rights of the author are in no way Jeopardized* This thesis by ^ ................ has been used by the following persons, whose signatures attest their accept­ ance of the above restrictions. A Library which borrows this thesis for use by its patrons is expected to secure the signature of each user.

, NAME AND ADDRESS

DATE

NORTHWEST!:

*IVERSITY

A STUDY OP THE CHANGES IN THE VOLUME OP PRESS FRUITS AND VEGETABLES HANDLED BY HIDDLE11BN OPERATING IB THE CHICAGO SOUTH WATER MARKET , 193S-1949

A DISSERTATION SUBMITTED TO TEE GRADUATE SCHOOL III PARTIAL FULFILLI,DENT OP THE HEQU IREMENTS for the degree DOCTOR OP PHILOSOPHY

PieId of Marketing

James Donald ^utterworth Evanston, Illinois August, 1950

P roQ uest N u m b e r: 10101240

All rights reserved INFORM ATIO N TO ALL USERS The q u a lity o f this re p ro d u c tio n is d e p e n d e n t u p o n th e q u a lity o f th e c o p y s u b m itte d . In th e unlikely e v e n t th a t th e a u th o r did n o t send a c o m p le te m an u scrip t a n d th e re a re missing p a g e s , th e s e will b e n o te d . Also, if m a te ria l h a d to b e re m o v e d , a n o te will in d ic a te th e d e le tio n .

uest P ro Q u est 10101240 Published by P roQ uest LLC (2016). C o p y rig h t o f th e Dissertation is h e ld by th e Author. All rights reserved. This w ork is p ro te c te d a g a in s t u n a u th o rize d c o p y in g u n d e r Title 17, U n ited States C o d e M icroform Edition © P roQ uest LLC. P roQ uest LLC. 789 East Eisenhow er P arkw ay P.O. Box 1346 A nn Arbor, Ml 48106 - 1346

PREFACE This is a historical study of the second largest wholesale fresh fruit and vegetable market in the country•

The

period covered by the analysis is one in which great changes in production, marketing, and transportation took place*

The

purpose of the study is to determine and account for changes in the volume of fresh fruits and vegetables handled by middlemen operating in the Chicago South Water Market*

For

the purposes of this study, the South Water Market should be understood to include not only the wholesale middlemen whose businesses are located within the geographical limits of the Market as described in Chapter II, but also those chain retail companies, cold storage warehouses, and out lying wholesalers who utilize the services and facilities of the Market• Acceptance of the conclusions and recommendations should be made only with full recognition of certain lim­ itations inherent in a study of agricultural production aid marketing*

The basic limitation is related to the use of

the United States Department of Agriculture data on the production, arrivals, and unloads of fresh fruits and vegetables*

The Department admits that its published data

on the volume of fruits and vegetables produced in the several states are only estimates.

They make no claim to

measure precisely the actual tonnage volume*

The same

reservation is made with respect to arrivals and unloads of fruits and vegetables in the Market, particularly those arriving in trucks, as opposed to rail freight cars,

^o

attempt is made by the Department to claim complete accuracy

601773

ii

in reporting these data.

They are admittedly estimates,

hut they are estimates made by persons with Intimate knowledge and experience in the field of agricultural marketing; and as such, they are the only reliable estimates available to anyone, whether private individual or govern­ mental agency*

The data used in this study are those used

by the federal government as a basis for economic planning and control, and hence, for the purposes of this study, may be considered reliable. A second limitation rests on the adjustments in the published data, made by the writer.

The details of these

necessary adjustments are fully explained In the text, but it should be recognized that they are based on estimates of the true situation.

These estimates were obtained, and

employed in the calculations, only after consultation with those persons most acquainted with the South Water Market and its operations, and are believed to be based on realistic as sumpt ions • Those individuals to whom a debt of gratitude is due for their assistance In gathering, interpreting, and adjusting the data used in the study include Walter W. John, Chief of the Information Branch, Midwest Area, Production and Marketing Administration of the U. S. Department of Agriculture; J . A. Hunter, South Water Market Agent of the Market hews Service, TJ. S. Department of Agriculture; N. Abramson, Secretary, the Produce-Packer Publishing Com­ pany, Wheaton, Illinois; George Bredeson and Natalie Rae,

South Water Market Credit Association; and Perry Stern, General Manager of the Fruit

Sales Company, Chicago

All of these, and others, gave generously of their time, experience, and knowledge. Acknowledgement must also he made to Professors Ira D. Anderson, James R. Hawkinson, and Richard M. Ciewett all of horthwestern University, for their invaluable assis­ tance in the form of criticisms and suggestions. J. D. B. B 1 oomIngt on, IndI ana Jiily, 1950

TABLE OF CONTENTS Page LIST OF T A B L E S ....................................... . LIST OF ILLUSTRATIONS.............................

vii Ix

Chapt er I.

I N T R O D U C T I O N .............................

1

Functions and Importance ox* the South Water Market Objective and Scope of This Study Contribution to Marketing Knowledge II.

A DESCRIPTION OF THE PHYSICAL FACILITIES AND THE MIDDLEMEN OF THE SOUTH ViTATER MARKET • • .

8

Physical Facilities for Receiving Incoming Shipments Organized Wholesale Markets Markets and Facilities Included In the Study III.

ANALYSIS OF THE VOLUME OF FRESH FRUITS AMD VEGETABLES MARKETED IN THE SOUTH WATER M A R K E T ....................................

34

Analytical Procedure Production of Fresh Fruits and Vegetables Comparison of Production and Arrivals IV.

A COMPARISON OF THE ARRIVALS AND UNLOADS OF FRESH FRUITS AMD VEGETABLES IN THE SOUTH WATER M A R K E T .......................... Comparison of ^otal Arrivals and Total Unloads Comparison of Arrivals and Unloads by Commodity Groups Summary

v

65

Chapter V.

Page ANALYSIS OP THE TRANSPORTATION SERVICES SUPPLYING- THE SOUTH WATER M A R K E T . ...............82 G-eneral Comparison of Rail and Truck Transportation Analysis of Transportation hy Commodity Groups The Use of Air Transportation in Supplying the South Water Market Summary

VI.

CONCLUSIONS AND RECOMMEND AT IONS . . . . . . .

.122

Relationship Between Production Volume and Arrivals Volume Diversions to Other Markets Effects of Transportation Changes Summary Re c ommendat i ons Appendix A. B.

SOURCES OP INFORMATION.............. .137 SELECTION OP COMMODITIES, COMMODITY CLASS­ IFICATION, AND GEOGRAPHIC AREAS OP PRO­ DUCTION .......................

.142

C.

SELECTION OP THE PERIOD COVERED BY THE STUDY. .148

D.

ADJUSTMENTS OP THE DATA TO ASSURE HOMOGENEITY

S.

REFERENCE TABLES.

/P.

.153

..................... 162

SUPPLEMENTARY GRAPHS............................ 189 BIBLIOGRAPHY.

.

...............................223

V I T A .............................................. 227

LIST OP TABLES Table 1* 2.

3,

4# 5. 6*

7.

8.

9. 10*

11* 12* 13.

14.

Page Production of Selected Fresh Fruits and Vegetables in the United States,1938-1949•

• •

42

Percentage of Total United States Fresh Fruit and Vegetable Production, By Commodity Groups, 1938-1949» » • » • » • • • *

44

Percentage of Total United States Fresh Fruit and Vegetable Production, By Geographic Areas, 1938-1949..................

45

Percentage of United States Citrus Fruit Production, By Geographic Areas,1938-1949•

60

* •

Arrivals and Unloads of Selected Fresh Fruits and Vegetables in Chicago, 1938-1949*

.

57

Percentage of Truck Crop Arrivals Unloaded in the Market, By Area of Origin, 1938-1949.

«

70

Percentage of Non-Citrus Fruit Arrivals Unloaded in the Market, By Area of Origin, 1938-1949, • * • • * • . . * • • • • •

74

Percentage of Potato Arrivals Unloaded in the Market, 1938-1949 . . ♦ ...............

76

Percentage of Citrus Fruit Arrivals Unloaded in the Market, By Area of Origin,1938-1949 « •

79

Percentage of Total Arrivals Entering the Market by Rail and Truck, By Area of Origin, 1938—1 9 4 9 • • * • * • * • • * * • • • •

94

Percentage of Total Truck Arrivals, By Area of Origin, 1938-1949 ..........

97

Percentage of Total Truck Arrivals, By Commodity Groups, 1938-1949 • * • • « . * «

99

Percentage of Truck Crop Arrivals Entering the Market by Rail and Truck, By Area of Origin, 1938-1949* ............... * • * • * »

101

Percentage of Truck Crop Truck Arrivals, By Area of Origin, 1938-1949 • • • • • • ...

104

vil

LIST OF TABLES--(CONTINUED) Table

Page

15*

Percentage of Non-Citrus Fruit Arrivals Entering the Market by Hail and Truck, By Area of Origin, 1938-1949.......... . . • ♦ • 106

16*

Percentage of Non-Citrus Fruit Truck Arrivals, By Area of Origin, 1938-1949,

17,

18, 19,

20, 21*

• . • • 105

Percentage of Potato Arrivals Entering the Market by Rail and Truck, By Area of Origin, 1938-1949 . . . . , ................ Percentage of Potato Truck Arrivals, By Area of Origin, 1938-1949........... * *

110 . . 113

Percentage of Citrus Fruit Arrivals Entering the Market by Rail and Truck, By Area of Origin, 1938-1949,

116

Percentage of Citrus Fruit Truck Arrivals, By Area of Origin, 1938-1949.

115

Air Freight Arrivals of Fresh Fruits and Vegetables in the South Water Market, 1946-1949 . . . . * • * • • •

. 119

22.

Percentage of Total Chicago Rail and Truck Arrivals and Unloads Included in the Study. • . 145

23.

Quantities of Produce Contained in the "Usual *1 Carlot Load, 1938-1942, Compared with Quantities Contained in the "Usual" Carlot Load, 1943-1949 ............

157

24.

Adjustment of Statistical Data. « . . . • • • *

161

25.

Production of Selected Fresh Fruits and Vegetables in the United States, 1938-1949. . .

163

26.

Arrivals and Unloads of Selected Fresh Fruits and Vegetables in Chicago, 1 9 3 8 - 1 9 4 9 . ....... 153

27.

Rail and Truck Arrivals of Selected Fresh Fruits and Vegetables In Chicago, 1938-1949 • .

173

Arrivals of Selected Fresh Fruits and Vegetables at Chicago Industrial Plants, By Commodity Groups, 1938-1949. , . . . . . .

138

28.

viii

.

LIST OF ILLUSTRATIONS Figure I*

Page Fresh Fruit and Vegetable Wholesaling Facilities in Chicago. ............ .

9

II*

The Chicago Produce Terminal • • • • * • •

12

III*.

The Wood Street Terminal * • • * • . * • •

16

IV.

The South Water Market • • • • • • • • * *

.20

V.

Production of Selected Fresh Fruits and Vegetables in the United States, By Commodity Croups, 1938-1949 •••

43

VI*

VII*

VIII*

IX.

X*

XI.

XII.

Production of Selected Fresh Fruits and Vegetables in the United States, By ........... Area of Origin, 1938-1949.

46

Comparison of the Total United States Production of Selected Fresh Fruits and Vegetables With the Volume of Arrivals in the Chicago Market, 1938-1949 • • . • •

43

Comparison of the Total United States Production of Truck Crops With the Volume of Truck Crop Arrivals in the Chicago Market, 1938-1949* • • * . * • • • • • • •

52

Comparison of the Total United States Production of Non-Citrus Fruits With the Volume of Arrivals of Non-Citrus Fruits In the Chicago Market, 1938-1949 • . • • »

54

Comparison of the Total United States Production of Potatoes with the Volume of Potato Arrivals in the Chicago Market, 1938-1949* * * * * * « • » • * • •

57

Comparison of the Total United States Production of Citrus Fruits with the 11Fresh Markstr* production and the Volume of Arrivals of Citrus Fruits in the Chicago Market, 1938-1949...............

59

Arrivals, Unloads, and Diversions of Selected Fresh Fruits and Vegetables in the Chicago Market, 1938-1949 . . . . .

— 66

ix

LIST OP ILLUSTRATIONS— (CONTINUED) Figure XIII*

XIV*

Page Arrivals of Selected Fresh. Fruits and Vegetables in the Chicago Market, By Type of Transportation, 1938-1949.........

96

Arrivals of Truck Crops in the Chicago Market, By Type of Transportation, 1938-1949. •

103

Arrivals of Non-Citrus Fruits in the Chicago Market, By Type of Transportation, 1938-1949.................

108

Arrivals of Potatoes in the Chicago Market, By Type of Transportation, 1938-1949* * .............................. *

112

Arrivals of Citrus Fruits in the Chicago Market, By Tyoe of Transportation, 1938-1949...................................

114

Index Numbers of Volume of Farm Production, By Selected Products, United States, 1919-1944..........................

149

Index Numbers of Volume of Crop end Pasture Production, By Geographic Divisions, 1919-1944 ...............

151

XX to XXIV*

Comparison of Production and Arrivals of Truck Crops, By Geographic Areas, 1938-1949* . * ............................

190

XXV to XXIX.

Comparison of Production and Arrivals of Non-Citrus Fruits, By Geographic Areas, 1938-1949 ..........................

196

XXX to XXXIV.

Comparison of Production and Arrivals of Potatoes, By Geographic Area 3 , 1938-1949..................................

202

XXXV to XXXVII.

Comparison of Production and Arrivals of Citrus Fruits, By Geographic Areas, 1938-1949..................................

208

Comparison of Arrivals and Unloads of Selected Fresh Fruits and Vegetables, By Commodity Groups, 1938-1949. • • « • • • •

212

Comparison of Arrivals and Unloads of Selected Fresh Fruits and Vegetables,By Geographic Areas, 1938-1949..........

217

XV.

XVI*

XVII*

XVIII.

XIX.

XXXVIII to XLI. XLII to XLVI«

x

CHAPTER I INTRODUCTION Functions and. Importance of the South Water Market. The South Water Market, focal point of the Chicago wholesale fresh fruit and vegetable Industry, is of great importance not only to the millions of consumers residing in the Chicago Metropolitan area, but also to farmers, marketing agencies,

students of marketing, and all others interested In

the efficient nation-wide distribution of fresh fruits and vegetables.

This position of importance rests upon two sep­

arate and distinct functions performed by the wholesale middlemen for whom the South Water Market serves as a base of operations.

For the consuming population of Chicago and

surrounding areas, the market is a major source of supply of fresh fruits and vegetables.

Each year more than 50,000 car­

loads of perishable commodities are distributed to retailers and Institutions throughout the Metropolitan area by those businessmen located in the market.^" 1

Although estimates of consumption for persons residing in the Chicago Metropolitan area are not available, it has been estimated that, on a nation-wide average, per capita con­ sumption of fresh fruits and vegetables reached a peak of 508.5 pounds in 1945 and declined to 458.7 pounds in 1948. This estimate is based on farm weight and does not include consumption from home gardens. Consumption of Food in the United States, 1909-1948. (United States Department of Agriculture, Bureau of Agricultural Economics, Misc. Pub. 691, Washington, D. C., August, 1949), p. 75ff.

2

Bae second function of the South Water Market,

that of

serving as a source of supply for other wholesale markets lo­ cated in more distant consuming areas, is of equal interest and concern to producers and students of marketing.

In addi­

tion to its function of supplying the local population with its requirements of fresh produce,

the South Water Market

also serves as a concentration point for shipments from hun­ dreds of smaller growing and shipping centers; as an equali­ zation point for balancing supply and demand in other markets; and as a dispersion point for shipments moving on to eastern and southern areas.

Chicago's geographical position midway

between the producing areas of the West and the consuming areas of the East has placed it in a particularly important position in the channel of distribution*

ihis observation is

supported by the fact that over the past twelve years from 40 per cent to 45 per cent of the produce entering the Chicago market has been reshipped to other consuming or processing centers.

Ihe dual capacity filled by the Chicago wholesale

fresh fruit and vegetable industry thus places an unusual responsibility upon marketing agencies and facilities for creating and maintaining efficient nation-wide distribution of fresh produce. Objective and Scope of Ihis Study. Xt is the objective of this study to determine and "feee Xable 5, p. 67*

3

account for changes in marketing operations in the Chicago South Water Market, and the conditions which have affected these operations, as they have developed from 1938 through 1949,^

Ihe conditions under which such a great wholesale

market operates are ever-changing:

the volume of production

of individual commodities, as well as total agricultural out­ put, varies from year to year; the locale of production changes from one area of the country to another; new transportation facilities are developed; consuming habits with reference to types of food demanded by consumers change constantly; govern­ mental regulations and restrictions seldom remain static,

Hhe

period to be considered is one during which the dynamic nature of fresh fruit and vegetable wholesaling operations was ac­ centuated by more than five years of war and post-war adjust­ ment# In order to accomplish the stated objective,

changes

in two phases of wholesale operations will be analyzed.

One

involves the volume of fresh produce flowing from the pro­ ducing regions into and through the South Water Market, while the other concerns the type of transportation employed in this movement.

Both are closely related in their influence

on marketing operations and both must be considered in order to arrive at sound conclusions regarding recent changes In fruit and vegetable marketing. Since the volume of produce handled in a market deter­ mines to a great extent the conditions under which that 1

See Appendix G for a discussion of the selection of the 1938-1949 period.

4

market operates,

the first area to be analyzed will deal with

the flow of produce into and through the Market.

Although

the total volume handled in the Market is of great importance, especially with regard to physical facilities required, the relationship between this volume and the total quantities of fresh fruits and vegetables produced in the several growing regions is also a major consideration.

An understanding of

this relationship is essential to an appraisal of the impor­ tance of the South Water Market relative to nation-wide fruit and vegetable marketing channels. Ihe second major area to be analyzed concerns the type of transportation used to move fresh fruits and vegetables from the growing areas into the Market.

The importance of

this analysis rests upon the relationship between the type of transportation used and the changes that have occurred in the relative volume of arriving produce unloaded and diverted. Since there is no completely satisfactory facility for the diversion to other markets of incoming truckloads of produce, as contrasted with rail arrivals, such shipments must be un­ loaded in the Chicago area.

Conversely, much of the produce

arriving by rail is not unloaded here, but is left in the cars and re-consigned to other, more distant markets.

Conse­

quently, if, from any one growing area, an increasing propor­ tion of the incoming produce arrives by truck, this changing proportion has an important effect upon the volume of produce unloaded here in the Market. Since the development of the refrigerated railroad car

5

at about the beginning of the twentieth century, most fresh produce has been transported by this means*

However, with

the development of the motor truck and with building of wide­ spread systems of paved highways, all indications are that the highway truck has taken over a substantial portion of at least the short-haul movement of perishable fruits and vege­ tables.

Ihe inroads that have been made by the motor truck

into regions formerly served only by the railroads are impor­ tant not only to the individual market operator, who must necessarily take advantage of any new and more economical de­ velopments in transportation facilities if he is to maintain his competitive position, but also to all other agencies who are concerned with the marketing of fresh fruits and vegetables. Railroads must strive to protect their interests in shipping and receiving point facilities as well as en route icing and processing installations.

Storage agencies, whose operations

have heretofore been adjusted for receipt of rail shipments, must concern themselves with handling trucked-in merchandise. Communities in which central markets are located must be pre­ pared to reckon with the traffic congestion and locational problems attendant upon a shift from the use of rail trans­ portation to the use of truck transportation. Ihe two major areas of analysis described above are preceded by a comprehensive description and discussion of the physical facilities available within the Market for whole­ saling operations. These sections include a definition of that portion of the Chicago wholesale market to be included in the

6

study; a review of the historical aspects of the Market lo­ cation within the city of Chicago; a description of the many and varied physical facilities and service agencies designed and operated specifically for the use of fruit and vegetable wholesale middlemen; and a discussion and definition of the several types of middlemen involved in the wholesaling of fresh produce. Contribution to Marketing Knowledge. It is believed that a study covering the areas de­ scribed above can be valuable not only to persons actively engaged in the fresh fruit and vegetable Industry,--whether producer, wholesaler, or retailer,--but also to persons who are concerned more with the overall marketing structures and procedures which lead to the establishment and maintenance of efficient nation-wide distribution of an important segment of our national diet. For those who are concerned with the intimate day-to-day activities and decisions that are Involved In the buying and selling of perishable commodities at the wholesale and retail levels, the study will serve as a guide In understanding not only their place In the channel of distribution, but also the important factors which may well affect their entire operation. In addition, the study will point out deficiencies in the existing physical facilities of the Market, and will set forth recommendations for their improvement. For those students of marketing who are Interested in a general view of fruit and vegetable wholesaling, rather than

7

with the details of daily participation in market activity, the study will lead to a "better understanding of the national marketing structure as it has been affected hy a period of national emergency with resultant restrictions on the production and distribution of the commodities under consideration.

The

conclusions and recommendations derived from this analysis apply solely to the Chicago South Water Harket•

however, if,

after careful investigation, it is determined that other central wholesale markets for fresh fruits and vegetables have undergone similar changes in the volume handled, as well as in the area of transportation, then the conclusions and recommendations may be applicable to those other markets.

CHAPTER II A DESCRIPTION OP TEE PHYSICAL FACILITIES AND THE MIDDLEMEN OP TEE CHICAGO WHOLESALE MARKET The wholesaling of fresh, fruits and vegetables In Chicago is not confined to any specific geographic area. Rather, one finds physical facilities— rail terminals,

stor­

age warehouses, auction houses, and truck terminals--located In all sections of the city (see Fig. 1).

Similarly,

the

places of business of the wholesale middlemen are not always found in close proximity to each other.

Jobbers, who sell in

relatively small quantities to retail stores, may be located closer to their customers than to those larger wholesalers from whom they buy.

Middlemen whose primary function Is to

buy produce trucked In from nearby farms often are located in areas convenient to the growing regions surrounding the city.

Consequently, n The Chicago Wholesale Market” cannot

be described by reference to geographical or political bound­ aries, but can be defined only by a comprehensive description of the location and activities of the many marketing agencies and institutions of which It is comprised. This chapter is designed to provide such a description In order to assist In a clearer understanding of the conclusions and recommendations of the analytical material which follows.

WAP OF

CHICAGO,IIjIh Showing Team Tracks or C.M.ST.P.&P.R.R. AX.SO

OTHEB CAILROADS SERVING

S o u t h Wa t e r F r u it

V egetab le Mark et

and AND

C h ic a g o P r o d u c e T e r m in a l SCALE

OF

M IL E S

C.M.ST.P. £ P. k R. ADDISON S T . B ELM O N T E HERNDON

TEAM TRACK

CEERlNfl

dOTH

FULLERTON I HERNDON E L I MERE C AM LN AVE W E S TE R * AVE. D IV IS IO H ST. K iN Z iE S T .

ISACK C M ST P. c. P W ESTERN AvF HO LD IN G t r a c k

THE

C .M ST.P E.P.P ft. f t CACHES

VOOD

ST.

P O T A T O V A C O A N D CH ICAGO p r o d u c e T tftM IN A U V J IT H IT S OWN POWER

CIAG'.N u n io n

PACIFIC JC T.

S'on Sf

C .L N .W ST A T E ST. CAP. ICO C ARS P e n n s v ’. v a n i a HALSTED ST. TEAM TRACKS C A P . SO CAPS

4: th

«?rair L>V “ ’

C M .S T .P .tP . ST. TEA-'. TRACKS CARS

CAP. n o

O LD SOU TH W ATER S T . T E A M T R A C K M C., C.C C .E S T .L . I.C . - 9 1 0 4 - CAP. I S 7 C A R S M C. CAP. l o o CARS

/

_—

FULTOM POULTRY - EG

Neman

MARKET

SOUTH WATER MARKET

BfOC T

P o b iy s t . Yard

TEAM TRACKS C A P . 11 C A R S

C S .I.E r. T A Y L O R ST. CAP lo o CARS

YOODST

POTATO

C IA. - e IO C T

V.’ . RANDOLPH ST. M A R K E T

ROAD

Y A ftO

tQ

SOO LINE 11™ ST. CAP. TOC CCDS

rESH AVE

EAM TRACK

I.C . - M .C . w EuD d h l O i HG -'SACK

SOOTH WAT . f t MARKET T E R M IN A L

(C H .X E A V E S ) C A P . 16 C A T S

C.CN.X. AND C e .lQ . TEAM TRACKS C.EN.W. CAP. l i t CART C 8 .1 0 CAP GS CAPS

E R IG H TO H

C A K A l ST, TEAM TRACK r» K D . TO 13 TX STS W A& ASH i C . lt . V ; MOHCN GinPAN ',n n D y Ti R U N K ;» ERIE l CAP. 4 & 0 CAR S

Br'gnhnj>k

CorwifbYard £ ?

UNION f STOCK! YAttDS

frvd t*J

GRAND

AUCTION HOUSE ; FR U IT T E R M IN A L TER M IN AL y a r d s ; CAP. lO O O CARS C L E I . YARD ( e p ie

TRU NK

Ehdon

Yird

C R I IP

PENNA

PENN SYLVAN IA. P C .C L S T .L S D T H ST H O LD IN G T R A C K

BELT

MAYFDRO

=**^Te,‘ -

A? TH~ ST. Y A R u I

ROOT S T .Y A R D |

N.Y. : . - L S . 1 H S E N G LE W O O D H O LD IN G TRACKS ENGLEWOOD

A' ST

RecY la wr ed :!Sr. iH S D v

YARD I

f P EH H A

10

Physical Facilities for Receiving Incoming Shipments The Chicago Produce Terminal. When the South Water Market, in which the majority of Chicagofs wholesale fruit and vegetable middlemen are located, was moved to its present location in 1925 it was almost com­ pletely without rail facilities for receiving incoming shipments for fresh fruits and vegetables*

All receipts had to

be brought from the scattered team tracks by truck or wagon. All merchandise leaving the market had to be transported by truck, either to its final destination in another part of the city or to one of the several freight terminals.

Consequently,

in order to meet the needs of shippers, buyers, and other middlemen for adequate rail facilities, the Chicago Produce Terminal was opened in 1925, having been constructed under an agreement between the Santa Fe and Illinois Central railroads at a cost of approximately $1 2 ,00 0 ,0 0 0 , In choosing a site and planning the physical layout both the Illinois Central and the Santa Fe Railroads worked in harmonious collabora­ tion with Chicago receivers and shippers of the country so that its location, construc­ tion, and operation would work to the mutual advantage of the carriers and the fruit and vegetable industry ,2 The Terminal extends over a wide area In the vicinity

^"See p* 19* 2

Research and Development Bureau, Illinois Central Railroad (ed,), Organization and Traffic of the Illinois Central System (Chicago: Illinois Central Railroad Company, 1938), p. 78T

11

of West Twenty-seventh Street and South Ashland Avenue (see Fig* II), and while actually owned by the two railroads men­ tioned, is open to all carriers entering the Chicago area* It consists of seven facilities designed to increase effici­ ency in selling, unloading, icing, inspecting, and diverting rail shipments of fresh produce* the auction house,

These facilities Include

the public team tracks, the potato yard,

the watermelon yard, the Inspection platform,

the hold and

Inspection yard, and the classification yards* Auction Facilities*

The Auction house Is located on the north

side of the Terminal and includes a large, open display floor that will accommodate about 125 carloads of fresh produce* The produce Is unloaded directly from refrigerated freight and express cars spotted on tracks running along the west side of the floor and is reloaded into buyers 1 trucks that are backed up to loading platforms along the east side.

In

addition to the display floor, which is 800 feet long and 100 feet wide, the building also includes the auction rooms and offices of the Fruit Auction Sales Company, which conducts the auction business* Team Tracks *

The public team tracks of the Terminal will

accommodate some 670 cars of produce and are divided by fortyfour feet wide concrete driveways providing adequate space for unloading produce from the freight cars Into motor trucks. These tracks are used for cars whose merchandise has been sold or consigned to receivers or buyers in Chicago* certain months of the year,

During

the tracks are designated either

13

as the potato yard or as the watermelon yard, depending upon the need* The Potato Yard.

This yard is in operation during May, June,

July, and August of each year.

It consists of the team tracks

located at the southern end of the Terminal and accommodates 360 cars.

Also in the yards are telephones, radios, and

offices which the dealers may use to transact their "business* The telephones are connected with strategic locations along the team tracks so that conferences between buyers, salesmen, and others may be expedited.

Scales are provided so that

loads can be weighed as they leave the area in trucks •

Vvhen

not in use as a potato yard, these facilities and tracks are available for such other commodities as the market situation may demand. The Watermelon Yard.

This yard is composed of the team tracks

at the northern end of the Terminal and is in operation during the summer months when shipments of southern watermelons are particularly heavy.

Facilities similar to those found in the

potato yard are available. The Inspection Platform.

The Inspection Platform is south of

the team track area and is designed to facilitate the inspec­ tion of incoming shipments that have not been sold before arrival in the Terminal.

If the purchaser buying the carlot

intends to unload it for transfer to his place of business in the Chicago area, the car is moved to the team tracks for un­ loading.

If, however, he is buying in behalf of a receiver

located in another market,

the car is re-iced, if necessary,

and reconsigned to Its new destination.

14

The Hold and Inspection Yard*

This yard accommodates cars

that are either to be held for higher prices than are being offered when the cars arrive at the Terminal, or are to be inspected by prospective buyers.

These tracks will hold

about 270 cars, but since there are no driveways between the tracks the cars cannot be unloaded from this area.

However,

they can be re-iced here so that they will stay in salable condi tion. The Olassification Yard.

This yard is in the extreme western

end of the Terminal, and while of little importance to the actual buying and selling of produce, it is an important part of the Terminal operations.

Here the incoming and outgoing

cars are sorted by the railroads and are made up into trains moving out of the market to some other city. Into this great Terminal come the thousands of car­ loads of fresh produce destined both for Chicago and for other markets farther removed from the producing areas.

It

is in this Terminal that buyers representing the middlemen of the South Water Market meet each morning to bargain for incoming merchandise.

Here,

too, shippers, agents, buying

brokers, and selling brokers congregate each day to fill the requirements of their customers or to sell the produce of the shippers and growers they represent. In many cases the buyers have already contracted to buy some of the cars of produce.

This is accomplished by the

contacts they maintain in the growing areas through the medium of telephone,

teletype,

telegraph, and personal representation.

15

In such cases, as soon as the appropriate car is spotted on the team track, the trucks belonging to the buyer are driven up to the freight car and are loaded for transport to the buyers 1 store in the South Water Market or elsewhere. car has not been sold before arrival,

If the

the buyers carefully

Inspect the contents before agreeing to the purchase.

In the

case of cars bought In Chicago but destined for shipment to other markets they are, of course, not unloaded here, but are sent on to their final destination* ihe important function of the Chicago Produce Terminal is that It serves as a concentrated area within which buyers can assemble a complete assortment of fresh fruits and vege­ tables and within which sellers, or their representatives, can be assured of a substantial market for their wares. The Wood Street Terminal. In.addition to the Chicago Produce Terminal,

the Wood

Street Terminal, located about a mile and a half west of the South Water Market, between Lincoln Street and Western Avenue on West Fourteenth Street (see Fig* III), also serves as a rail terminal for the produce trade.

However,

this Terminal

is used almost exclusively for incoming potato arrivals and is open except the four months of the year when the Potato Market moves Into the Chicago Produce Terminal.

The Terminal

Is another outgrowth of the demand of the trade for a centra­ lized buying location.

Prior to its opening in 1930 by the

Chicago and Northwestern Railroad,

the Incoming potato ar­

rivals were handled at numerous small team tracks throughout

ftCT03MTI

MM,

i»»wh»>i

aiArd

mi

17

the city*

The principal terminals appear to have been the Grand

Avenue team tracks at Sixteenth and Jefferson Streets, and the South Water Street Terminal of the Illinois Central Railroad. Since the exchanges taking place in the Wood Street Terminal set the prices that are used in potato trades through­ out the Chicago area,

the Terminal is an important part of the

Chicago Wholesale market. Other Rail Facilities. In addition to the Chicago Produce Terminal and the Wood Street Terminal there are smaller team tracks in other sections of the city.

The most important of these include the

Illinois Central team tracks in Grant Park at Randolph Street; the Santa Fe team tracks in the vicinity of Twenty-second and State Streets;

the New York Central tracks west of State Street

on Roosevelt Road; and the Chicago, Burlington, and Quincy team tracks south of the South Water Market area. Chain stores and cold storage warehouses, as well as manufacturing plants using fresh produce In their processing operations, also have spur tracks on which cars may he de­ livered.

However,

the volume handled by these installations

is small compared to the amount received In the two major terminals,

the Chicago Produce and the Wood Street Terminals. 1

l

In response to a questionnaire sent by the writer to all railroads entering the Chicago area, the following infor­ mation was submitted by five railroads handling 56*3 per cent of the total Incoming rail shipments In 1948* Percentage of total Incoming shipments delivered to the Chicago Produce Terminal, 58.6 per cent; percentage delivered to the Wood Street Terminal, 24.1 per cent; percentage delivered to team tracks other than in the two major terminals, 10.7 per cent; percentage delivered to chain store warehouses, 4.8 per cent; percentage delivered to cold storage plants, 1.1 per cent; percentage delivered to industrial plants, 0.7 per cent.

18

'Truck Terminals. Although the Incoming shipments arriving by truck make up a substantial percentage of the total volume arriving in the Chicago area,

there is no central truck terminal com­

parable to those described for rail arrivals.

Individual

storage warehouses, Isolated middlemen, and industrial plants, as well as wholesalers located in the more concentrated mar­ kets, accept truck shipments at their unloading docks. Air Terminals. Ihe volume extremely small.^

of produce arriving in the city by air is The major receiving point is the Chicago

Municipal Airport at Cicero Avenue and Sixty-third Street, although a portion

of the shipments arrive at the new air

terminal northwest

of the city near Des Plaines.

Organized Wholesale Markets Jobbing Markets. There are three wholesale markets for fresh fruits and vegetables within the city of Chicago.

Two of these, the

Randolph Street and the South State Street markets

(see Pig. I),

are primarily Jobbing markets which receive produce from nearby farmers who truck merchandise into the markets each day during the growing seasons.

These two markets operate in a manner

similar to small town nfarm markets11 and sell primarily to re­ tailers and peddlers.

They are "organized" only in the sense

that a group of middlemen performing similar functions have See Table 21, p. 119.

19

located in close proximity to one another and have thus suc­ ceeded in establishing small centers for the buying and selling of fresh produce*

The volume handled in the markets

is generally believed to be extremely small in comparison to the total receipts in the Chicago area. The South Yfa-ter Market. The third, and by far the largest, wholesale fruit and vegetable market in Chicago is the South Water Market. This is the center for fresh fruit and vegetable wholesaling operations in the city and is the focal point for the receipt and dispersion of shipments arriving from all over the country. The balance of this chapter is devoted largely to a descrip­ tion of the market and its functions. Location.

The area officially designated as the South Water

Market is bounded on the north by West Fourteenth Place; on the east by South Morgan Street; on the south by the tracks of the Baltimore and Ohio Chicago Terminal Railroad which run between Fifteenth and Sixteenth Streets; and on the west by South Racine Avenue.

South Aberdeen Street, which runs

parallel between Morgan Street and Racine Avenue, divides the market into two sections and provides entrances and exits for the market area (see Fig. IV). This specific area was selected for the market In 1925 when it became apparent that the wholesale merchants would be forced to yield to the demand for civic improvements

ssmxjmm

§ &

1

to

o

r/>

u CO

to

ABERDEEN ST

10

I

o

CO

Office

Bldg* SOUTH

c|

RACINE

AVENUE

21

and vacate their original location on South Water Street near the northern edge of the Loop.^ After several years of debate and negotiations, the area, now known as the South Water Market was occupied by the wholesale fresh fruit and vegetable community.

Ihe merchants

moved not only their places of business into the new site, but also brought wlth them their previous street numbering system.

Even though they are now located several miles from

what used to be South WTater Street, but is now known as West Wacker Drive, the city of Chicago officially recognizes a system of numbering which permits the merchants to retain their old addresses.

A location on West Fifteenth Street

The improvements referred to include the razing of the old buildings in the original site of the market and the construction of what is now known as Wacker Drive. Several other undesirable characteristics of the old South Water Market site also influenced the decision to move to the pres­ ent area. Since South Water Street bordered on the Chicago River, the buildings on the north side of the street backed on the river bank. Xhis made it extremely easy and economi­ cal for the storekeepers to sweep their trash and garbage into the river with a resultant threat to public health. Having the river as the northern boundary also helped to prevent any expansion of the market, since the downtown business district was encroaching upon the southern and western edges of the market area. Furthermore, there were no adequate rail facilities serving the stores in the area, necessitating the use of wagons and trucks to move produce from the various team tracks scattered over the city. Since many of these tracks were located on the opposite sides of the Loop from the market, the trucks were forced to drive through the Loop district with a consequent loss of time and increase in expense. Xn addition to these drawbacks, the buildings in the area were completely inadequate for storing and handling large quantities of fresh fruits and vegetables. Due to their age and their construction few of them were sturdy enough to allow storage of such items as potatoes and onions, or even the construction and installation of cooling equipment. Hone of them was- de­ signed in a manner consistent with efficient and rapid handling of fresh produce.

22

may thus be known officially as Number 67, South Water Market.

This is the only area in the city In which the

municipal numbering system is officially disregarded. Store and Office Facilities.

The 166 store units occupied

by the merchants are located in six large cement, steel, and tile buildings facing the south side of West Fourteenth Place and on both sides of West Fifteenth Street.

Alleys

run parallel to Fourteenth Place and Fifteenth Street through the middle of each of the blocks, providing loading platforms at the rear of each building.

However,

these

alleys are extremely narrow and are used primarily for rubbish and garbage disposal. The individual stores are three stories high with a frontage of twenty-four feet and a depth of eighty feet. They are equipped with elevators, basements, and cooling rooms.

Along the front of each building is a sidewalk

elevated above the street level for ease In loading and un­ loading produce.

The sidewalk is protected by an over­

hanging roof from which hang the company signs of the mer­ chants • The six large buildings In which the individual stores are located were planned, financed, and built In 1925 by the parent organization of what is now known as the South Water Market Service Association.

Originally,

each store

was sold for $67,511.33, with the exception of the corner locations which were somewhat more expensive.

In the early

1 9 3 0 fs the values dropped to as low as $20,000 and it was

23

necessary to refinance the entire project.

ihe Chicago

Produce District Trust was organized in that year to provide new funds and to hold ownership of the stores until the in­ dividual merchants could buy them.

At the present time,

values are up to around $35,000 and the Trust has sold all but two of the units to private owners.

Approximately 75

per cent of the stores sold by the Trust are now completely paid for. Only the area described is known officially as the South Water Market; however,

the fringes of the area, especi­

ally along Fourteenth Place, South Morgan Street, and South Racine Avenue, are also occupied by merchants dealing in either fresh fruits and vegetables or in allied commodities. Those middlemen, who, because of the nature of their opera­ tions, are not required to handle the merchandise, physically, maintain offices in two office buildings on the north side of Fourteenth Place.

Xn those buildings may also be found the

offices of governmental agencies active in the market, as well as the offices of the railroads and trucking companies serving the market.

Here, likewise, are representatives of

other agencies that facilitate the buying and selling of fresh produce.

These include advertising agencies, freight

claim specialists,

cooperative grower associations, co­

operative sales agencies,

credit rating agencies and others.

Trade and Credit Associations.

The owners of the store units,

some of them actively engaged in the fruit and vegetable business and others acting as absentee owners, are required,

24

under the terras of the original 1925 agreement,

to belong

to the South Water Market Service Association,

Ihe Association

is governed by a Board of Directors composed of seventeen of the store owners while Its dally activities are directed by a General Manager employed for that purpose,

The Board also

serves as a committee representing store owners and operators In all matters having to do with collective bargaining on wage and hour demands by the handlers and laborers employed In the Market*

Ihese workers are organized and deal with the store

owners as a group,

ihe Service Association also provides a

night watch service, operates a street lighting system, as well as a sewage and rubbish disposal system, and will attempt to settle any disputes or controversies which affect the opera­ tions of either individual operators or the market as a whole. Closely allied with the Service association is the South Water Market Credit Association,

the objects of which

are: to secure unity of action among Its members; to adjust differences among them;to spread reliable commercial intelligence among them; to protect trade against unjust or unlawful exactions; to reform abuses; to regulate credits and collec­ tions of debts; and advance the interests of the business in which its members are engaged.3* While membership in the Association is open to anyone engaged in the wholesale fruit, vegetable, poultry, butter, or egg trade in Cook County, Illinois, the majority of the members are located in the South Water Market and are engaged pri­ marily in the fruit and vegetable business.

Since so many

By Law s, South Water Market Credit Association, Section 4.

25

of the transactions completed, in the Market are accomplished with a minimum of written records and a maximum of verbal agreements, the work of the Association is highly important to all who do business with its members* Rail and Truck Facilities,

Even though one of the reasons

for the dissatisfaction with the previous location of the Market was that it was inaccessible to rail terminals, the new market is also without adequate direct rail connections. Freight and express cars cannot be spotted at individual stores for loading and unloading, nor will the spur tracks south of the Market accommodate enough cars to handle the volume entering the Market,**"

This means that practically all

the merchandise must be brought into the market by truck. To accommodate anticipated truck traffic, the original design of the Market specified streets up to 100 feet in width* These were thought to be sufficient for the size and number of trucks operating in and around the Market in 1925*

however,

with the growth of interstate trucking both in and out of the Market, and with the continuing increase in the size of trucks and trailers used to haul fresh produce, proven to be somewhat inadequate*

the streets have

In order to conserve space

along the sidewalks in front of the stores, trucks are backed ■^It should be pointed out that it would be impossible to provide a direct rail connection to each store, since many of the stores unload several cars of produce a day. It would require a drastic re-arrangement of the store buildings to allow each s tore to have direct rail connections long enough to accommodate all the cars from which the store draws Its supplies•

26

into the loading platforms blocking the free flow of traffic past the store sites.

This condition is especially serious

on Fifteenth Street where stores face both sides of the street and trucks and trailers up to forty feet in length are unloaded on both sides of the street simultaneously. Added to these vehicles are those of retail and wholesale buyers who come from other sections of the city to purchase produce.

Although parking spaces have been provided

on the fringes of the market, it is still necessary for these buyers to load their purchases into their trucks or autos. It is, of course, advantageous for them to drive directly to the wholesalers1 store.

Since each wholesaler may be selling

produce to a score or more individual buyers, each of whom wants to be the first to have his truck loaded, the conges­ tion is obvious. Xn addition to buyers * vehicles and the interstate trucks used to bring produce into the market, the trucks owned or chartered by the South Water Market middlemen to bring pro­ duce to the stores from the several rail terminals must also have access to the loading platforms.

Since rail facilities

in the Market do not include direct tracks to the stores, trucks are used to bring produce from the Chicago Produce Terminal, the Wood Street Terminal, the airports, or the smaller team tracks.

Even though the Market opens well before

dawn, wholesalers cannot possibly have all their supplies in their stores before the buyers appear.

In many instances the

middlemen resort to selling incoming produce from the truck,

27

rather than unloading it into the store*

This practice takes

up valuable loading space and adds to the congestion of the Market area* Middlemen in the South Water Market* Xn 1948 there were 768 businesses in the city of Chicago licensed by the United States Department of Agriculture to buy or sell fresh and frozen fruits and vegetables.-*-

Of

these, 324 were located in the area described as the South 2 Water Market* The balance were located in the two smaller PACA Licenses in Effect in Sixty-Five Cities, (United States Department of AgrTcuTture, Production and Marketing Administration, Washington, D* C., April 23, 1948)* These firms are licensed under the provisions of the Perishable Agricultural Commodities Act, 1930, as amended, the purpose of which is to suppress unfair and fraudulent practices in the marketing of fresh and frozen fruits and vegetables and cherries in brine in interstate commerce. Those affected by the Act include Mall dealers, commission merchants, and brokers handling fresh or frozen fruits and vegetables which move from one state to another or from foreign countries, or to or within the District of Columbia. This includes truckers who buy in lots of one ton or more for resale in wholesale or jobbing quantities and large retailers who buy in a calendar year more than twenty lots including purchases aggregating in a day a ton or more of produce that has been received by the seller in interstate or foreign commerce” (The Perishable Agricultural Commodities Act— How 11 Affects You, United States Department of Agriculture, Production and Marketing Adminis­ tration, Washington, D. C., 1946), p. 1. p The statistical information concerning the numbers of middlemen operating in the South Water Market was compiled from several different sources. The basic classification was from the files of the Producer-Packer Publishing Company, Wheaton, Illinois, one of the two credit rating agencies serv­ ing the fruit and vegetable industry. Their annual registers purportedly list all persons and businesses holding Federal licenses under the Perishable Agricultural Commodities Act. They contain information relative to the location, type of business, annual volume, and types of commodities handled. Since the individual firms assist in the compilation of the

28

jobbing markets or were wholesalers and. retailers operating in other sections of the city. No two of the more than three hundred wholesale middlemen in the South Water Market operate in exactly the same manner.

Differences are apparent in the kinds of com­

modities handled; in the type of customer to which they sell; and in the functions which they perform.

Ihe only signifi­

cant classification-which can be made of these middlemen is on the basis of the marketing functions performed by them.

The

balance of this section is devoted to such a classification, as well as to a census of each classification as of December 31, 1948. ihe four major classes to be used in the following discussion include receivers,

jobbers, shippers, and brokers.

Middlemen operating in other capacities will also be described, but the four types enumerated above comprise the bulk of the Market.^" Receivers.

Numerically,

the largest group of middlemen in the

material included in the registers, it was felt to be desir­ able that the information available be confirmed by someone with an intimate knowledge of the Market and its middlemen. Miss Natalie Rae, Secretary of the South Water Market Credit Association, and several members of the staf* of the Chicago office of the Production and Marketing Administration, United States Department of Agriculture, were asked to check the in­ formation as reported to the credit agency. On the basis of their knowledge of the individual middlemen, the classifica­ tion was revised to its present form. ^Ihe definitions used in this discussion are similar to those employed by the bulk of the fruit and vegetable trade and by the standard textbooks in the field of market­ ing. However, it should be pointed out that trade usage in the Chicago area commonly reverses the terms ’’receiver" and "jobber” as they are defined below*

29

South Water Market is the receivers.

ihese firms, numbering

131 in 1948, buy and "receive" full carlots or trucklots of produce and resell these lots intact or in large jobbing quantities to other middlemen.

fhey purchase or secure

supplies by any one of several different methods:

they may

make direct purchases in growing areas from growers or shippers;

they may purchase through buying brokers located

in the Market;

they may employ persons in the growing areas

to purchase cars in their behalf;

they may buy from a shipper

located in another terminal market; or they may buy produce after it has arrived in the Chicago market and has been in­ spected for quality and preservation. Receivers may sell their merchandise by carlot or trucklot to other local wholesale or large quantity buyers who do not have contacts in the growing areas; they may sell in smaller lots to local jobbers who in turn will sell to re­ tailers and institutions;

they may sell their produce to

customers of the Auction House; or they may become "shippers" and sell to receivers located in other receiving markets# Jobbers #

A jobber, of which there are 120 in the South Water

Market, may be defined as a firm which purchases supplies in carlots, or less, from receivers and which sells to local re­ tailers or institutions.

ihe jobber, differing from the re­

ceiver, does not have contacts in the growing areas, and is dependent upon receivers to maintain adequate supplies for his purposes.

He waits until the merchandise is in the Market

under the control of a receiver or selling broker and then

30

makes his purchases to fill orders he has already received or that he contemplates receiving. Shippers.

Ihe primary function of a shipper in the South

Water Market is to supply out-of-town customers with produce that has been received in the Ohicago area.

The shipper may

buy his requirements from South Water Market receivers or he may employ representatives in the growing areas and purchase produce before it is shipped.

He sells to receivers located

in other terminal markets, as well as to buying brokers who represent principals in other cities.

Xn some instances the

shipper maintains close relationships with growers, often financing them before planting time or buying the crop before it is harvested. Ihe three middlemen described above typically buy and sell produce in their own names.

However, many of them will

also handle consignments from their suppliers on a commission basis, being repaid for their efforts with a percentage of the selling price. Brokers.

The main function of the broker is to bring buyer

and seller together.

Buying brokers represent receivers,

Jobbers, large retailers, and institutions, and are charged with finding sources of supplies for their principals.^" ■^In the Chicago market buying brokers who represent eastern wholesalers are especially important and are given wide discretion with respect to the acceptance and purchase of merchandise. Edward A. Duddy and David A. Revzan, Marketing: An Institutional Approach, (Hew York; McGraw Hill Book Company, "Inc., 19477, p. 377.

31

Selling brokers, on the other hand, are generally the local representatives of growers and shippers in other markets* Their E m o t i o n is to find buyers for the produce being shipped into the Market by their employers.

Neither class of broker

physically handles the merchandise he sells, nor does he take legal title to it.

He may inspect the shipments for quality

and state of preservation, but he does not operate from a store or warehouse as do the other middlemen. Other Middlemen.

In addition to the four major classes of

middlemen there are others represented in the South Water Market.

Especially important are the branch sales offices of

large marketing organizations such as the California Fruit Growers Exchange, the Florida Citrus Exchange, and the Texsun Citrus Exchange*

Chain retail stores also maintain produce

buying offices in the Market. Combination of Functions.

It should not be ooncluded from the

above definitions and descriptions that each middleman operates in only one of the several capacities.

The more usual situ­

ation is that the wholesaler is anxious to do business in any way that will return a profit to him; and he is ready at all times to alter his business methods if the adjustment promises a quick return on his investment.

Cf the 131 firms in the

Market doing business primarily as receivers, 120 combined their receiving operations with one of the other functions. Of the 18 shippers in the Market, only 3 performed a shipper's functions exclusively.

Fifty-tYro of the 120 jobbers combined

these operations with those of a shipper or receiver.

Cf the

32

total of 324 middlemen in the South Water Market, only 87 specialized in any one type of operation*

The balance com­

bined the activities of two or more of the several classes. The major conclusions that can be drawn regarding the combination of functions by middlemen in the Market are that (1) those middlemen operating primarily as receivers tend to combine these activities with those of a jobber,

(2) those who

act primarily as jobbers are also likely to function as re­ ceivers, and (3) receivers are more likely to accept consign­ ments on a commission basis than is any other group of middle­ men. Markets and Facilities Included in the Study The only organized wholesale market included in the analytical sections to follow is the South Water Market.

The

Randolph Street and South State Street jobbing markets are specifically excluded.

Also excluded are those retailers

and wholesalers located in scattered parts of the city and who are not truly a part of the operations which center around South Water Market. This exclusion is necessary because of the lack of data relating to the volume of incoming shipments received in these markets and b u s i n e s s e s F u r t h e r m o r e ,

such infor­

mation is not a matter of record in any official source and could be obtained only by inspecting the accounts of each middlemen concerned. ■^For a complete discussion of the sources of the data used in the study see Appendix A.

33

therefore, any interpretation placed upon the analysis which follows must he made in the light of the foregoing limi­ tations,

These limitations do not make the study less signif-

cant; rather,

they add to the preciseness of the analysis by

eliminating isolated operations which are unimportant to the major problems of large scale fruit and vegetable wholesaling operations in Chicago,

CHAPTER III ANALYSIS OF THE VOLUME OF FRESH FRUITS AND VEGETABLES MARKETED IN THE SOUTH WATER MARKET The balance of this study is devoted to determining and accounting for the changes that have occurred in market­ ing conditions and operations in the South 'Later Market from 1938 to 1949*^

The specific changes to be considered Include

those related to production and arrivals volume, which are the subject of this chapter;

those concerning the primary

disposition of the fresh produce after it has arrived In the Market, discussed in Chapter IV; and changes In the types of transportation used in moving fruits and vegetables into the Market,

considered In Chapter V* In recent years,

some students of agricultural

marketing have questioned the continuing: importance of the central market In the channels of distribution for fresh fruits and vegetables.

2

The basis for their queries lies

■^The volume of produce arriving in the Market will hereinafter be termed "arrivals"; the volume of produce un­ loaded in the Market will be termed "unloads” ; and the volume of produce diverted to other markets, rather than unloaded here, will be termed "diversions". 'Thus, the total arrivals volume is made up of varying proportions of unloads and di­ versions • 2 Duddy and Revzan, ojo. cit., p. 12. See also Geoffrey S. Sheperd, Marketing Farm Products. (Ames: The Collegiate Press, Inc., 1946), pp. 39f f . Also William C. Crow,

35

primarily in the development of the motor truck and the paved highway, and the Increasing use of that means of transporta­ tion.^" Ihe growth of the trucking Industry has permitted middlemen in small cities and towns to establish direct re­ lations with shippers In the growing areas.

Ihe smaller

loads which trucks carry, as compared to the loads carried In railroad freight cars, have enabled the Industry to open new markets in towns too small to utilize full rail carloads of produce.

Furthermore, Crow, in explaining the decline of

the central market, bases his conclusions on the traffic con­ gestion and the multiplicity of truck and rail terminals found In many of the large central markets.

2

The continuance of any trend toward the development and Increasing utilization of the more direct channels of distribution would have important effects on the business communities of those cities which now support central markets. While not all fruit and vegetable middlemen would be affected "Wholesale Markets for Fruits and Vegetables in 40 Cities", United States Department of Agriculture, Circular 463, (Washington, D. C.: Government Printing Office, 1938). Mr. Crew is Chief of the Marketing Facilities Branch of the Production and Marketing Administration of the United States Department of Agriculture, and as such, is a recognized authority on fruit and vegetable marketing. 1

Sheperd, ibid., p. 39. Crow, o p „ cit., p. 12

36

(since jobbers and brokers still would be needed to supply the local population and to negotiate the direct shipments) the need for a substantial portion of the middlemen would be obviated. Although several studies have been made relative to the importance of central markets for other agricultural products, there is no tangible evidence of the effects of direct marketing on the South Water Market in Chicago, or on other major central markets for fresh fruits and vegetables. This study, through the analysis of the physical volume of such commodities handled in the Market, and the type of transportation used to supply the Market, will provide a basis for sound conclusions regarding the continuing impor­ tance of one of the largest of these central markets. ANALYTICAL PROCEDURE Xt is not enough to measure the growth or decline of activity in the Market merely by comparing the carload ar­ rivals in 1949 with those of previous years.

Such a com­

parison would, of course, indicate the absolute change in the volume of fresh produce handled in the Market.

It would also

indicate the present utilisation of the physical facilities In the Market and its terminals compared with their utiliza­ tion before and during World War II. However, in order to form a base for sound conclusions concerning the Importance of the Market relative to the nation wide channels of distribution for fresh fruits and vegetables,

37

the analysis must be refined by the introduction of other factors affecting the volume handled in the Market, Production of Agricultural Commodities. One of the factors which has an important influence on the volume of produce handled in the South Water Market, or any other market, is the quantity of fruits and vegetables produced by the growers.

During World Wrar II a combination

of factors, including a patriotic urge to produce, an in­ crease in prices, and favorable weather conditions, led to a considerable expansion In the production of most fruits 1 and vegetables. In view of this general Increase in the quantity of produce available, an analysis only of the abso­ lute quantities handled in the Market would mask any tend­ encies toward the adoption of direct marketing methods within the trade.

Consequently, It Is necessary to compare■the

changes in the quantities of produce arriving In the Market with the changes in the volume of production of the commodi­ ties under consideration*

Only by making such a comparison

can the changes in Market receipts be properly appraised. Population Shifts. Another factor which has Influenced the volume of produce shipped to the South Water Market Is the relocation of the population of the country during the period under con­ sideration.

This is particularly important In relation to

k e e Table 1, p. 42.

38

shipments of produce from the Western States, since it is in this region that the greatest increases in population have o c c u r r e d . I f production increases do not keep pace with the increases in population and with changes in per capita consumption, less produce is available for shipment from such areas into other consuming markets.

However, such shifts

in population are in the nature of fixed conditions under which the market must operate, and hence are not compensated for in comparing production volume with the arrivals in the Market. Sources of Statistical Data. The statistical data concerning production, arrivals, and unloads volume, on which the balance of this study is based, were compiled and computed from the periodic reports

^"Population shifts during the period covered are estimated as follows: Region

Per Cent Change 1948 over 1940

North Atlantic States............. North Central S t a t e s ............. South Atlantic States............. South Central S t a t e s ............. Western States ...................

Plus 8.0 8.4 9.3 5.0 34.4

T o t a l ........................

Plusll.O

Source: Wartime and Postwar Shifts in 1. S. Population and Businesses (Bun and Bradstreet, 1949)

39

of the United States Department of Agriculture*

These re­

ports are issued by the Bureau of Agricultural Economics, in the case of the production reports, and by the Production and Marketing Administration in the case of the arrivals and unloads reports Adjustments of Arrivals and Unloads Data. In any study involving the comparison of physical quantities it is essential that the units In which the quanti ties are measured represent the same physical amounts in all cases.

This requirement cannot be met if the data relative

to the volume of arrivals and unloads in the Market are used in their published form. The heterogeneity of the data, as published by the Department of Agriculture, is the result of differences in quantities of produce loaded Into the average rail freight car before January, 1943, as compared to the quantities loaded after that date.

In order to conserve rail freight

facilities and equipment during Uorld War II, the Office of Defense Transportation, In 1942, ordered the railroads and shippers to increase the amounts of produce loaded Into re­ frigerator cars.

Since the Department of Agriculture data

on arrivals and unloads in Chicago are stated In terms of ucarloads,f, rather than in non-varying units such as pounds or tons,

they do not reflect the Increased quantities of

produce contained In each arriving car after January 1, 1943. *^See Appendix A for a detailed description of each of the sources used.

40

Consequently, it is necessary to adjust the reported arrivals and unloads data so that each carload represents the same physical quantities of produce regardless of the year for which it was reported.

The details of this adjustment are

fully explained in Appendix D.

So far as can he determined,

this is the first study of central market wholesaling to include such adjustments.^" Commodities and Geographic Areas of Production Used in the S t u d y “ The commodities included in the study are grouped into four major classes and number thirty-seven different fresh fruits and vegetables, as follows: TRUCK CROPS Artichokes Beans (Snap) Beans (Lima) Beets Cabbage Cantaloupe Carrots Cauliflower Asparagus

Celery Corn (Sweet) Cucumbers Eggplant Es carole Melons (Zoneyball) Melons (Honeydew) Kale Lettuce

Onions Green Peas Green Peppers Shallots Spinach Tomatoes Watermelons

NON-CITRUS FRUIT Apples Cranes

Peaches Pears

Plums and Prunes Cherri es

POTATOES White Potatoes Sweet Potatoes Lemons

CITRUS FRUITS Oranges

n rapefruit

The writer is aware of only one other study In which adjustments for heavier loadings after 1942 are made. Plowever, the study referred to does not pertain to the central market problem, but is concerned only with a single commodity. No Information as to the nature of the adjustments can be found. See Problems in Marketing Potatoes (United States Department

41

Geographic Areas* In order to reduce the number of Individual producing areas to be considered, the several states have been grouped into five geographic areas, as follows:^ North Atlantic North Central

South Atlantic South Central

West

The balance of this chapter is concerned with a com­ parison of the quantities of fresh fruits and vegetables produced in the United States with the volume of arrivals in the South Water Market.^ PRODUCTION OF FRESH FRUITS AND VEGETABLES All Commodities, The total United States production of fresh fruits and vegetables included in the four

c o m m o d i t y

groups used in this

study Increased 15.7 per cent from 1939 to 1949 (Table 1)* of Agriculture, Bureau of Agricultural Economics, Washington, D. C., 1949). 2See Appendix B for detailed information concerning the selection of these two bases for classification. ^See Appendix B for the states Included In each area. ^Appendixes E and F contain tabular and graphical presentations of production, arrivals, and unloads data, classified by geographical area of production and origin, and by commodity groups. This material was omitted from the body of the report in the Interests of clarity and con­ ciseness, but it forms an important part of the general presentation. ^Inasmuch as production data for 1938ar© not available In usuable form, any discussion Involving such data must be based on 1939 volume. See Appendix C.

42

TABLE 1 PRODUCTION OP SELECTED FRESH FRUITS AND VEGETABLES IN TEE UNITED STATES 1938-1949 (Thousands of short tons) 1938 1939 1940 1941 1942 1943

26,683* 37,044 36,306 38,497 39,216 41,409

1944 1945 1946 1947 1948 1949

42,948 42,724 48,351 43,675 45,093 42,854

^Excludes truck crops in 1938 only. Source*

Table 25, Appendix E.

The peak production of more than

forty-eight million tons In

1946climaxed a long period of technological

advance andthe

adoption of Improved practices In agriculture. Increased production per worker, per acre, and per animal have keynoted the rise In farm out­ put and the gains in the efficiency of produc­ tion. The large increase In crop production during the last ten years resulted from a sharp rise In yields owing to greatly expanded use of fertilizer and lime, improved seeds, especially hybrid corn, more timely cultural practices due to greater mechanization, other improved prac­ tices, and generally more favorable weather than in the pre-war period.^ Although there has been a general Increase in the volume of farm production, whether considered from the view­ point of all crops or only those used In this study, the in­ crease has not been the same for all commodity groups nor for all the geographical areas used as a basis of classification in this study.

Farm Production, Costs, Practices, and Returns (United States Department of Agriculture, Bureau of Agricultural Economics, Statistical Bulletin 83, Washington, D. Cm, 1949), p. 6-7.

43

.1.lloeis cl die:

on;

on -u

1o

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 .V--- - -iJi*

■— *

44

Commodity Groups, Figure V portrays

the volume of production* from 1938

to 1949, of the four commodity groups considered in this re­ port.

Citrus fruit production showed the greatest increase

over the entire period, followed closely hy the truck crop classification.

The relatively sharp increase in citrus

production can probably be traced, in part, to the new and varied forms in which citrus products are now being offered to the consumer.

During World War II, canning, dehydrating,

and concentrating processes and facilities were greatly ex­ panded and perfected, and are now being utilized to supply civilian markets. Amplifying Figure V, the data in Table 2 indicate

that

TABLE 2 PERCENTAGE OF TOTAL UNITED STATES FRESH FRUIT AND VEGETABLE PRODUCTION BY COMMODITY GROUPS 1938-1949 Truck Crops Non-Citrus Fruit 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

*

Potatoes

Citrus Frui t

Total

27.41 29.79 30.32 32.78 28.45 31.50 32.18

30.06 23.42 21.40 22.58 21.20 17.39 20.67 18.22

50.01 35.03 35.66 32.12 31.94 38.94 31.33 33.42

19.93 14.14 13.15 14.98 14.08 15.22 16.50 16.18

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

30.97 30.59 32.00

21.43 18.24 21.27

30.25 33.85 32.15

17.35 17.32 14.58

100.00 100.00 100.00

■^Production of truck crops not available for 1938 on! Source:

Computed from data In Table 25, Appendix S.

45

truck crops and citrus fruits both, increased their propor­ tions of total fruit and vegetable production, although in the case of citrus fruits the increase was less than 1 per cent*

Potatoes suffered the greatest decline, falling from

35*03 per cent of total production in 1939 to 32*15 per cent in 1949* Geographic Areas of Production* The data presented in Figure VI and Table 3 reflect the dominating position of the Western States in the produc­ tion of fresh fruits and vegetables. TABLE 3 PERCENTAGE OF TOTAL UNITED STATES FRESH FRUIT AND VEGETABLE PRODUCTION BY AREA OF ORIGIN 1938-1949 North North Atlantic Central 1938* 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

16*64 17.58 17.55 17.03 17.54 17.27 15.93 14.42 17.65 16*51 17.19 17.66

16.45 19.71 18 .55 19.23 19.25 16.84 15.51 16.04 15.61 13.67 15.08 16.01

South South Atlanti c Central 15.94 17.27 17.58 17.31 17.43 16.90 18.90 17.17 17.78 18.71 18.26 18.94

13*71 10.24 9.26 10.05 10.18 10.19 10.05 10.93 9.92 9.45 8.78 7.84

Wes t 37.26 35.20 37.06 36.38 35.60 38.30 39.61 41.44 39.04 41.66 40.69 39.55

Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Excludes truck crop production in 1938 only. Source:

Computed from data In Table 25, Appendix E*

This position of leadership Is emphasized by the data in Table 25, Appendix E, which Indicates that this group of states leads all others In both non-citrus fruit and truck crop production*

Likewise, It has increased Its output of

O Cl

46

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

47

potatoes at a more rapid rate than any other area, and by 1949 was second only to the North Atlantic group In the pro­ duction of that commodity classification. The South Atlantic States led all others in the pro­ duction of citrus fruits (Table 25, Appendix E ) with the ex­ ception of 1940-41-42, when the Western States assumed the leadership in that commodity group. COMPARISON OF PRODUCTION AND ARRIVALS Total Production Compared With Total Arrivals. Figure VII compares the total United States production of fresh fruits and vegetables included in this study with the volume of arrivals of those commodities In the Chicago area. Only by making such a comparison can a significant appraisal of the increased amount of produce entering the Market be made . As would be expected with the great Increases In pro­ duction,

the volume of arrivals in Chicago has also increased.

The major significance of Figure VII, however, is not the absolute increases in both production and arrivals, but the relative changes in the two series.

An inspection of the

graph reveals two distinct trends, one running through the first six years of the period, and the other continuing on until 1949.

During the first period, from 1939 to 1943, pro­

duction slowly Increased to a point approximately 12 per cent above the 1939 level, while carlot arrivals in Chicago were declining almost 6 per cent.

In other words,

even though

48 -C*,uvC/w j-Gxl

O I-

jl

’11ions o:

0*C-

j*

X/ o C -uxO G j-Oii

I T ‘ '1 1 1 • -

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 ’*-n ■•••»■-• r.

49

there was an increasing amount of fresh fruit and vegetables potentially available for shipment into Chicago, as well as into other markets,

the volume that was flowing through the

Chicago market was declining* However, in 1944, there was a significant change in the relationship between production increases and arrivals increases*

Carlot arrivals in the Market began increasing

faster than did production, and by 1947 arrivals were approxi­ mately 20 per cent above the 1939 level, whereas production was only 17 per cent above 1939*

Thus, during the latter

part of the War, as well as in the immediate post-war period, C h i c a g o ^ position as a marketing agency in the channels of distribution for fresh produce was substantially strengthened. By 1-949, however, production had declined 1.9 per cent below the 1947 level, while arrivals were almost 6 per cent below 1947.

In the 11 years from 1939 to 1949,

total production

increased 15.7 per cent, while arrivals increased only 11.6 per cent. One of the important factors determining the amount of produce flowing into "fresh market" channels, as opposed to processing channels, is the introduction of new methods of processing fruits and vegetables.

Ihe importance of these

new methods is illustrated by the utilization of the citrus fruit production volume, the only crop for which such infor­ mation is available. Calculations based on the United States Department of Agriculture Crop Reporting Board annual reports Indicate that

50

from 1938 to 1949 the proportion of the total farm sales of all citrus fruits that went into fresh market channels, rather than into the hands of processors, declined from a high of 83 per cent in 1938 to a low of 58 per cent in 1949. This decline was consistent from one year to the next, with the exception of 1942 and 1944 when slight increases in the percentages of fresh sales were reported."*'

[[his general de­

cline in the proportion of total citrus fruit production moving through fresh market channels naturally affects the potential volume of citrus fruits that might have been shipped into Chicago.

Due regard of this is taken when the individual

commodity groups are analyzed. The changes occurring in total production volume and total arrivals volume summarize the general pattern for the individual commodity groups, although not all groups followed the precise pattern set by the totals.

The following dis­

cussion points out the relative production and arrivals volume for each of the four commodity groups, based on the geographic areas in which they were produced. 1

Percentages for 1938 to 1944 were calculated from data reported in Gitrus Fruits Productlon, Farm Disposition, Value, and Utilization of Sales, Crop Seasons 1909-1944 (United States Department of Agriculture, Bureau of Agricultural Economics, Washington, D. C., 1945), p. 3. Percentages for 1947 to 1949 calculated from data reported in similar publications covering the years 1947 to 1949, and published in 1949.

51

Comparison of Truck Crop Production and Truck Crop Arrivals* The comparison of truck crop production and truck crop arrivals in the South Water Market follows closely the pattern set by the relative changes in total production and total arrivals volume.

Truck crop production increased

steadily from 1939 to 1942, while the volume of truck crop arrivals in the Market declined from 52,000 car's in 1939 to 45,600 cars in 1942 (see Fig. V T I T )•

However, commencing in

1942 and continuing through 1946, the rate of increase for arrivals was substantially greater than the rate of produc­ tion increase.

Then in 1947, production declined 13 per

cent from its 1946 level of 15,000,500 tons while arrivals decreased only 8.3 per cent.

In 1948, both production and

arrivals volume increased slightly.

In 1949 production de­

clined while arrivals increased. Thus,

comparing 1939 to 1949, truck crop arrivals

have not kept pace with the increases in production. all of the deficiency was built up before 1942.

However,

Since that

year, arrivals volume has increased at a faster rate than has production.

It should be pointed out again that the pro­

duction data include the total volume of truck crops produced, whether destined for shipment through fresh market channels or for shipment to food processors.

Consequently, it can be

concluded that Chicago has, since 1942, maintained its truck crop marketing position so far as fresh market channels are concerned.

And even considering total production, regardless

of utilization,

the South Water Market is not only maintaining

52

- roauct-Lon -liilicr-s c: O^

acr'o wOn

-lOu.JL'L-L.S O.

O ^

. -i-

in

.va3j

io p a ,

- . J . '-• U , •*

— •-

*-> - • W

-•'

■

-

^

£

- ■*

_

-

53

Its relative position, but during the last six years of the period has actually increased the proportion of the total truck crop production It handles. Comparison of Mon-Citrus Production and Arrivals. Over the twelve-year period from 1938 to 1949, pro­ duction of the seven commodities making up the non-citrus fruit classification increased from 8,021,400 tons in 1938 to 9,119,200 tons in 1949.

This increase of 13.5 per cent

can be compared to a decrease In carlot arrivals In the Market of 2.0 per cent during the same period. As in the truck crop classification,

the period from

1938 to 1942 resulted in a fruit production increase greater than the arrivals increase however,

(Pig. IX).

Prom 1942 to 1945,

the arrivals volume declined only 15 cars from

16,705 In 1942 to 16,690 cars in 1945, a reduction of 0.09 per cent while production declined 6.4 per cent.

This relative

gain In arrivals did not continue after 1945, however, as pro­ duction Increased and arrivals declined.

Thus, it was only

the gains in arrivals the South Water Market made during World War II that enabled it to maintain its position with respect to the increased production volume of non-citrus fruit from 1938 to 1949.

The trend, both before and after

the War, has been for production to increase more rapidly than arrivals. The most Important fruit producing area, as well as the chief source of supply for the Chicago market, has been

54

x r o u u c c -.c n •I o

l l i c r . S

Qj

— — w - .

-lOp'C V.Oj.]

kJ

w

~

n—•-

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 Scic»se or O.atn :

2"

23,

*_>

55

the group of Western states lead by California, Washington, and Oregon (see Appendix E).

Contrary to the over-all

pattern of relationships between fruit production and ar­ rivals, arrivals from this area declined at a slower rate than did production volume from 1938 to 1942#

From 1942 to

1945, the percentage Increase In production was greater than the Increase in arrivals. Part of this change can no doubt be attributed to the transportation restrictions placed on the movement of re­ frigerator cars during the earlier part of the War when the general direction of shipment of war supplies was from West to East, the result of the staging of troops destined for the African and European theaters of war* movement from West to East,

With this general

there was a reduction in the

facilities available for the shipment of fresh produce in the same direction.

However, when the scene of activity

shifted to the West Coast, and military food supplies were shipped in that direction, refrigerator cars then became available for the West to East movement of civilian supplies. Consequently, from 1943 to 1947 there was an exceedingly sharp increase in the volume of West Coast fruit arrivals in Chicago; an absolute Increase of from 9,231 cars in 1943 to 11,540 cars in 1945 and 15,011 cars in 1947.^

By 1949, however, arrivals

had declined 17.0 per cent below the 1947 level while produc­ tion had decreased only 9.9 per cent.

■^See Table 26, Appendix E.

56

Comparison of Potato Production and Arrivals. The relationship between potato production in the United. States and potato arrivals in the South Water Market has not followed the patterns set by the other commodity groups so far considered.

Figure X indicates that by 1942

production had declined from 15,347,000 tons in 1938 to 12,527,000, a reduction of 14.5 per cent.

luring the same

period, carlot arrivals of potatoes in the Market increased from 25,770 cars in 1938 to 29,611 cars in 1942, an increase of 14.8 per cent. During the war years, from 1942 through 1945, however, production increased more than 15 per cent, while arrivals in the Market declined 17 per cent.

The greatest increase

in production during this war period came from 1942 to 194-3, when volume increased 28.7 per cent.

Presumably,

this sharp

increase was due, in part at least, to the fact that by 1943 farmers had mobilized their resources, and, under the urging of the government for increased production of foodstuffs, were producing at something approaching maximum capacity as a part of the war effort.

Unlike both citrus and non-citrus

fruits, an increased planting of potatoes is immediately re­ flected in increased harvesting,

there being no unusual lag

between planting: an(3- harvesting as is the case with the two fruit classifications.

The decline in arrivals during the

war years may also be explained by reference to the wartime food situation and the increased processing of potatoes for shipment to overseas forces.

Such processing was primarily

57

- pcaucticn -Oil lions o!

- - J- ' w-

-OPl oons

v t u U ' —

- ^

— V i

-I CCm_G«:

CO

10,c

/■0

«D

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 "^-oc

or rata:

m aoles 93 a.-.’ 3",

58

dehydration, although it is extremely likely that large quantities were also shipped directly from the growing areas to the large military posts in this country* From 1945 until the end of the period, potato arrivals increased almost 30*3 per cent, from 27,339 cars in 1945 to 35,719 cars in 1949,

The great part of this increase, how­

ever, was immediately after the Far, from 1945 to 1946, when arrivals increased more than 9,000 cars*

During this same

period, production decreased approximately 3.0 per cent, from 14,200,000 tons in 1945 to 13,777,000 tons in 1949. Comparison of Citrus Fruit Production and Arrivals. In the four years from 1938 to 1941, citrus fruit production in the United States increased from 5,315,000 tons to 5,765,000 tons

(see Fig. XI).

In the same period,

carlot

arrivals of citrus fruit in the Market declined from 12,911 cars in 1938 to 12,572 cars in 1941, a decrease of 2.5 per cent • After a decline in both series in 1942, production and arrivals show a decided increase for several years.

Pro­

duction climbed to a peak of 7,807,000 tons in 1948, repre­ senting a 41.4 per cent Increase over the 1942 level.

Ar­

rivals reached their peak In 1947 when 13,879 carlots arrived in the Market, an Increase of 20.3 per cent over 1942. both 1948 and 1949,

citrus arrivals fell off sharply.

In Produc­

tion also declined in 1949, due to cold weather during the growing season.

59

A

^rivals 'thousands of carloads ■20 -IB

Production Ilillions of short tons

10

■LG 14 Production ~U 0 ^—

■oroduct ion

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 Data for 1945 and 1946 not available* Source of d a t a ' fables 25 and 26* A ^ e n d u x n . Pa-' a , ‘resh market” oroduct ion computed from Department of Prrits Prcduction. Disposition A g r 1 c u 1 1 u r e r e p o r t s C l t r n ; Value end utilisation of i

up _r» Ox

r a■-JL.

f-''^ t ct al 5n 11 cd St at os - c n p s 1V>" son Ox ■ ? ! .e "fres! l marke t" r odu c1 1 or fruits xi:Ltb.

cit r r s vol ex■ c of arrivals of 195Ko'/-1949• ^

.

tru.s fr

"PCu. and J

.on

60

The geographic distribution of citrus production is also of importance to this study.

Table 4 indicates that the

Western States, primarily California and Arizona, lost ground to the Southern growing regions from 1938 to 1949*

The reason

TABLE 4 PERCENTAGE OF EMI TEE STATES CITRUS FRUIT PRODUCTION BY GEOGRAPHIC AREAS 1938-1949 South Atlantic 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

30.9 46.4 39.8 41.5 37.9 47.0 49.2 43.5 51*9 50*1 53.0 60.9 Source:

South Central 29.3 14*9 14.6 13.6 13.0 13.2 12.4 16.0 16.6 15.5 15.2 8.7

Wes t 39.8 38.7 45.6 44.9 49.1 39.8 38.4 40.5 31.5 34.4 31.8 30.4

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Computed from data in Table 25, Appendix S.

for this is that production In the West suffered an absolute decline, while Florida more than doubled its output. production,

Florida

In relation to the total United States production,

Increased from approximately 31 per cent of the total In 1938 to almost 61 per cent in 1949.

California and Arizona, on

the other hand, were producing approximately 40 per cent of the national output in 1938, but this percentage declined to 30 per cent In 1949. The preceding comparisons have been made on the basis of total citrus fruit production volume, without regard for whether or not that production vH

•H

ft

IS r^: ft o ft ft

co CO rH CO P P » • * * » •

•

I—I

P CO rH I • •

• I

CM LO i>LD O | £>

LO

*

•

•

*

00 w CM CO

#

CM

CO

aS

pp

i— 1

•H

aS ft

yt> 2

ft si4 P i— I

LO

y

« E> i— I

o

CO H4 P i— !

I— I

P LO rH

I

CO O 00 CO O i

P CO P P O

CO CD

Si rH

ft| © P

CO I— I

rH *H ctf

yi

CO

o

P b

ft

•

00 to CO H O

S aS

CO

•

r— I

ft

s! rH

s

CO I>

H4 • P 00

CO

*H

00

P

CM LO H4tD CO P rH CO •

CO

LO • CM 00

O CO 00 LO |H i H H ^ COO

•

o p

rH

i—I O•CM• H4 LO P « • • •H P LQ H1CO P aS P CO P P P PP P

s

P

i—I CO P P CM P • * • • • •H aS CO to CO H P PP 00 rH ft ft ft

S

P

P

H4

CO P O O P 1 * • * • • I j> CD ftO ft I 00 rH CDP P

•

co p

•

sF• H• H•CO H I • • I i —IH1 tOCO O t rH 00

pp

P

H4

CM •

s

y o H4

^•H•O*O *H » CM CO rH O O i—}CO ( —Ii —I

ft! 00

o

O

e GO i— t

si I—1 00 H rH O- P •H as £> 'M4CM H* ft PP P CM P P P

y o

O

ft

LO £> LQ H4O O

LO

i— I

W P b r l

H4 H4 P i— 1

Si

cd Pi

ft i—1ft LQ CO 1 • • • • • i rH P CO to o t LQ ft CM

LO •

P

I—I

CO P CO LO ft 1 # • • • • 1 CO O to CO p 1 H 4CM ft P p

CO

O O rH

co

LO #

o

rH 1 * • • • • t 'nH o P LQ O t H400 rH

rH

o P to P 1 • • • • • I to o O H 4P 1 LQ CM 00 P P

rH CO

•

CO

O

O ft "M4ft i —1 1 • • • • • t CD ft CO CO o t LQ ft 1—1

CM •

i —I

p-
0 5

1 • > 02 I Q H Hi— 1

1 1 I

i— 1 O * • • i £> O ( CO O rH

02 O 05 0 05 5

1 • 1 LO 1 rH

CO• O • H • i—•1 O * GO CO i—I Q> O

CO O i— 1

I 1 1 1 | 1

O

CO 05

CO » 02 CO

O tO i —ICD

O 1 * * i CO O 1 LO O rH

Q

£> • LO I— I to •

• CO 00 • 02 rH 02 • 2> CO

*t • ft f t »• • • ft f O o • f t -1 i —1 •rHrH •rH 1 -P cd *P crf crf • f t 40 El Q El Eh crf -P crf 4-5 0 rH ElrH El ft ft EH 4-5 0 4-5 0 < O rH

CO to to J> to to to CM CO CO 03 rH tO

«\

£"

05

n •

05

a>

'sF t> CT> CO SO

05 rH

05 ^ H LO LO tO 05 00 rH •« •« 05 H

•v

05

i—I

O

n *v *

05 05 ^

LO

05 CO l> to ^ to

05

L- ^ tO CO O CQ to ^ CQ O I> CQ CQ O 05

to

05 CO o to to rH tO

LO 05

tO O to CO to ^ rH LO LO CQ CO SO tO O

o

LO 05 H

to ^ to ^ 05

co 05

tO CO

tO

oo

D- ^ tO CQ O CD CQ £> O rH CO tO tO tO 05

to H

05 rH

o O O

CQ o> rH

to ^ ^ to CO rH CQ CQ ^ rH LO rH •V «v *». *, * 00 to to CQ 05 LO

LQ

i— 1

•t n * «t *

to O LO CQ CO

H

O tO CO C- O

O to to H O

05

LQ

CQ

^oioo) ^

•k •» »v *v

CQ CO

to

Eh £

P3

O

Eh CQ

05 i— 1

•V 05 I> CO CQ 00

to 05 rH

c-

CQ

B M O 1 £3 O is;

05

to 05 I— 1

05 to ^ LO O to to CO J> ^ 05 CQ 00 to to

to

05

rH

to CO

05 tO rH O 05 O 05 J> 05 tO tO LO rH

LO

•v

«V

a*

H LO rH

o

S3

•V

00

i —I

rH CO 05 DO tO

00

i— I

CO

*v •

o

i —i

45

cd

40

o

S3 ?h S3 U

cd

©

U

cd 45 cd 45

rH

45 © 45 © rH rH tO CO «H O CO CO ^ D- "vJ1 O n »v •> » CQ CO CO CO LO CO tO i— 1 i— 1 CQ

rH O

*> 03 CQ rH

•i to CO 1— t

•

•

•

•

•

• O •H •P Pi cd rH H-3

•

• o

•

•

•

i— 1 cd +3 SH Pi -P cd PJ rH © -P

rH cd

< X 43 U O

O < o

•

•

•

• rH cd -P

• •

• -P •P -p -p Sh 2 w O o o ©

X

X

pC|

|25 X co CO

03 rH

S

CQ O tO tO CO 03 CO 03 03 I> to to CO to •V »l •» »\ »l E> CQ tO tO 03 CO CO rH rH CO

03 to c•V CQ

'sH rH

03 to

•

-p Pi ©

to

03 1— 1

CQ LO ?> O £> 'tH CO O LO *v n to 03 LO CO CQ rH

CO tO 03 CQ D* CO t> *s

to £> H CO


CM CM

1 I 1

r > CM £ > L O r H CO i 05 CO CO •\ *i i i to t- LO CM CM

co LO CO •V o LO

00 CO 05 £> i 05 05

fc* rH CM

CM LO

DO 05 H 4C O i to I > ** n i i ^ {> CM

LO LO CM * o CM

I>

C O LO LQ LO i St* L O •» K i i C O LQ rH rH

CO tO rH •* i—1 CM

05 H 4

1 1 1

1 1 1

1 1 1

1 1 1

O O *fc CO CO

o CM *» LO LO

05 -sH 05 1 —1

CO H 4

05 rH

1 1 1 1 I 1

00

to •> CM LO

rH •V CO LO

LO CO H 4

CO tO CM H 4LO CO t o CO 00

LO CD O

1 1 1 1 1 r H rH H 4r H I

H 4 CM

CO to CM H * LO 05 £> O »» •> rH CD tO r H CM

I> H 4

05 rH

CO

05 !> H4

LO LO LO rH CO CO to rH 05 *> n » CO LQ 00 to rH

i— I

05 r—1

O 05 CM CO O 05 1 I r H 05 LO 1 t 1 1 J> rH CM

(H CO CO

O CM 05 CO CO 05 1 1 O O 05 •l *\ * I I 1 i O i—1

4 4 05

1 1

rH

I

CD O CO 05 i C O !> •V t i M 1CO tO

cd

£> £> CO 03 rH 1 05 O tO O 1 rH CO 05 05 |

lQ rH 05

•v

02

O

rH i—1

05

02

tO CO O CO O tO 05 tO rH rH CO CO CO 03 H 1

TO i— !

cd

O

rH 02 H* CO rH 1 OOOOt>H I 03 05 'sH O 1

*k »i

•k *k

CO rH

u

05 rH

u

03 H

IH SH

to

Cto

*k

LQ

i— 1

o>

rH




to

© —

3

I—I

•»

1

•v *\

02 CO H*

05

LQ ^ O Z>

0-

Sh

02

tO

H 1 LQ 00 05 | rH CO LQ r H 02 05 O 1 •k *k »k LO 02 05 rH rH

LQ CO

tO

1


rH C> tO > O 02 O 02 rH

•k *k

•v to

rH

o a,

| I 1

02 CO

P rH

TO rH

cd t> •H

rH •k i— i

£ 05

£>

c-

TO •rs cd o 2

CO rH rH I> 1 H* CO CO tO O 1 02 02 tO LO 02 1 «k «k LO 02 O

*H Pi Ph

rH tO 05 o t o CO L O O ^ W ^ 05 0 5 co

1 I i

H O ^ I C tO r H rH LO


i— 1 •\ ft pH i— t

TO i— 1

cd > ft Ph Ph

O

cd © Ph

03 CD 02 CO rH 03 O CO CD

03 i— 1

id o £

8

05 H4

H 4 05 LO CD 05 (M CD O 05 rH COCO H 4 LQ CO CO rH CO •k «k «v *k »k CM CO CD 'sF CM CM

LO O 02 * o H4

05 rH O C~ O j > 05 O 03 tD O CM 00 CM CO CO H* H •k »k «k *k ^ HI H 4 05 tDCM rH CM

rH CM CO •k

O O tO CO H 4 1 (M rH H 4 CO 1 LO IO I •k 00

CD CO CO •k 05

05 rH rH rH CD fJ> 05 CO CO 05 03 CO CD 03 CO CO rH •v *k «k *k «v CM CO CO CO CM 03

LO LO 05 •k H4 H4

i— I LQ £— tO CO H 4 1^ lO i— 1 lQ i— 1 r— 1 CO rH to CO 05 CO *k «k ^ *k «k CO H 4 CD O H rH CO

CO CM CM *k cLO

to CO CO 05 CM CM H 1 03 O tO H 03 iO CD •k O rH

LO CO rH •k CM i— 1

lO j> 05 H 4 rH 03 03 03 O H O H tO CM rH I> 05 00 •v «k *k «k «k CM H 4 LO O H CO

CO 00 o •k LO H4

LO

CQ

j^.,1 O PQ

i— 1

*H cd

o

t- 03 rH

CO

LO o to CO to

LO

^

i— 1 cd

4-5

CO ^ I> CO CO 05 02 CO 05 H 4 CD n

COO rH I LOCO ^ I O H 4 rH I «\

•>

»v

CO i— 1 CO •k

O to 00 co

CO

lo rH CO H 4 I rH ^ 00 O I

CO

i—i

8

i— i *H cd PQ

•V 05 H4

«k «\ «k *k

PQ

o P Eh

^

OtOiO^H

O

to

•— 1 cd 4-5

LO

X

©

PQ

PQ

rH cd 4->

4-5 cd

CQ

PQ

rH

*H cd PQ

i— 1 cd •H £ •P CQ £ TO £ *H

A £3
LO p H CO tO LO CO 03 £> 00 rH O 02 CO CO LQ CJi LO LQ

g Oi H4

Oi i— 1

G

lO rH

Oi

•H

•k

03 H 4 rH H 4 I rH CO 03 LO rH £> Oi 1 CO O O LO CO 1 03 CO CD £> Oi 1 4k *t CO rH rH rH tQ Oi Oi H Oi LO CO Oi

rH rH LO O

IO

I I

to

IrH

I I

rH rH

I02 | I

02

Oi rH Oi rH

8 rH

•H

H 02 CO H rH rH tO Oi LO rH O- LO rH Oi

cn

43

DO rH

LO

0 G

a

•H 43

G o o i i o-

02

CQ C E-t

LO CO

rH to rH

O £>-

02

O

G

rH

rH rH I I I

rH •H Crf Prf

Oi CO CO »x

i— 1 Crf

43

02

rH Oi

I I t

to •^H to

CO

to

02 •t

O G

to H

CO

02 Oi rH

8 CO rH Oi rH

02 02

LO

to Oi O rH O CO CO CO

rH rH •X rH

rH rH

DO H 02

01

O 01 O- Oi rH r> 02 00 02 CO CO to CO LO

CO

rH

to

I t I

O CO

I— I

CO CO

Oi

8

G G

•H -P

rH

•H

G o o1

crf

rH Crf

O

-P

Crf O

rH rH Oi

o

rH

G

to

rH •H

to

K

cd

•x

O

02

02

tO rH I>- rH CO EO CO LO tO LO CO O to O rH

LO

8

-P

tO 01

CO CO to £> rH rH rH OtO 0 “ Oi Oi rH

LO O

cn

1 ra 0

PM

02 Oi

o

to CO rH •X LO CO

©

43

m

DO Z>

tO CO LO O- CO LO O LO rH £> tO O Oi 02 rH

8

rH Oi i —I

02

8

crf

crf

Oi

t | I

I 03

I

O to o

i—I crf -p

•k

03

to to CD

I o

t LO 00 £I IO 03 i tO O O

I

CO rH to

&

CD CD rH

crf

03 rH

I rH lO ^

1^0 0

I

Ito CO CD

I

O

I

I LO to J>

I

CD •k 1— 1 «H

I I0 ^ 0

I

+3

8 Xi

to

©

CD

G g

m pi

cq EH

i i I

t sH O tO i 5> 02 tO i rH tO *k 03

i i t

i O 03 i O rH t £> •V rH

00 o~ rH

-tH CD rH

JW

O G

i i i

-P G O o -— f 1 03

crf

pel

I I 03 tO CD t I J> O CD I t to«\toW c-

to

£>

1— 1 *H Crf cd

C-

•« rH

02 03 tO

1 i |

CD 1 IO 1 tO 1 «k tO

i LO tO 1 i tO O* i— 1 1 •' f CD rH 1 »

•i H 03 tO

to to to *k CD

I I I

I CD 03 CO I H O tO I CO CO 03 •> t

CD t>

-P •H

G

rH

Ih fc

cd -p

ra 2 Pi 4-5 •H O

I I t> CO I I CD LO I I ^ •k03 ^

rH tO O

CO c-

02

02 tO

8

CD

i—1

.M o

pj

I I I

to 02 O-

CO*k to

rH

I

I rH

1 t 1

1 1 1

£> CO 1— 1

8

rH •H cd

Crf -P

CD i— 1

O

1 1 1

i £> iO i tO Hi i to 03

1 i 1

03 rH

1 1 1

i 03 t> 00 1 i tO LO IO 1 i rH LO 03 1 •k «k *k to 03 C-

j> to CD

1 1 1

a

G 8

I t I

cd

I 03 ^ rH 1 J ^ 02 to 1 I tO 03 o 1 *1 to

J> CD to •k 03 i— 1

rH •H Crf cd

03 i— 1 •

•

o

o

(— I • cd • crf P> crf -p • H C r-l C •H H H -P cd -p

£ U G Pi

erf

©

P. i H rH CO rH t

O

CD CO tQ ^ Oi ay ay ay ay ay

0

CO

i

ay

01

rH LO CM LO LD rH rH rH CD

LO

ay

01 02 rH

rH

00

rH

00

r—!

Oi

i —I

44 0

to ^ ^ 03 O

^ IO ^ Oi 03

£>Oi O

03 Oi 00 ay

1

ay

ay

i—1

lO

CO H

cd W

to

o

o c~rH Oi

£> rH O ay ay

ay

© ♦H •H

^ H ^ C O C O ^ 1— 1 aH

'd

ay

CO

ay

CO

H

CM CJi CM LO H CM rH LQ

O 0 a

rH

rH

p

o s

•

O

O

i— 1 a H cd P £ Ph £ p of rH £ rH P 0 P < rl

rl

P

cd 0

Ph O ■\ «\ w «\

05 05

i—I

CQ

cd CG

rH

rH i— I i— I £"-

G & rH •H

LO •* to

t o o 1> H

o

rH rH cd .p £h

Td

© G G

•rH P

Td

© G G •H P G o

LO sh 05 H

rH

•rH cd fG

o

I— I

G

o

Eh

rH rH

*H P

•

O © G G o — o ©|Td p o > © Ph Ph p PM © O fH CO Td

© © Ph

o

©

P

8

G

P

p

©

© I— I

©

G

P o © ft V ^ G G ftl bO © o h S G

188

43

&

I I I I I 1 I I I

GQ 3

P

I t

I I I I

I II

£ 0 w C3

m

p co *2; Eh

44

CO ^ 03 03 03 I—1 t— 1 1—1

03 03 I— 1

CO id cd o «H p p3

S &

43 P Cd a. © Q

cd 43 © bo ©

>

APPENDIX F This appendix is compoaed of six sections, as follows: Section 1: Figures XX to XXIV — Comparison of the production of truck crops in each of the five geographic j*reas with the volume of arrivals oP truck crops in Chicago Prom the geographic areas, 1938-1949. Section 2: Figures XXV to XXIX — Comparison oP the production oP non-citrus fruits in each of the five geo­ graphic areas with the volume of arrivals of non-citrus fruits in Chicago from each of the geographic areas, 1938-1949. Section 3: Figures XXX to XXXIV -- Comparison of the production of potatoes in each of the five geographic areas with the volume of arrivals of potatoes In Chicago from each of the geographic areas, 1938-1949. Section 4: Figures XXXV to XXXVII -- Comparison of the production of citrus fruits in each of three geographic areas with the volume of arrivals of citrus fruits In Chicago from the geographic areas, 1933-1949. Section 5 s Figures XXXVIII to XL I — Comparison of arrivals and unloads of selected fresh fruits and vegetables in Chicago originating in each of the geographic areas, 1938-1949. Section G: Figures XLII to XLVI — Comparison of arrivals and unloads of selected fresh fruits and vegetables in Chicago, by commodity groups, 1938-1949.

SECTION 1

191

VW r .!-

""3- ’ w’ V^L^,O L*—.O'jSX

IluraroGc -1 car ilG

.'roauct j-on

i938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 l'

aa

millions or c„:crt tons

192

-'rodact Ion Millions oT sliort tons : ---

^ I i

i

----

1 1- - - i~ H

i

r---

;

i

i

,

w

4 - H !

10 o0 —

---- WC ^ .

O aow-'"-dv*. hnj O '*1k_>

.

O

c:.rleads -100.0

C

*■ — *0

0*0

0.1

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 0Curn

dui

o0 dat a • *

ao/' a o or

ro^

u t v - ^ - O u - - J

O

‘"If'

.-,.0

‘. a i d

«■-* *w>

y

roauctL*i.cn 1 T.ions 0,0 - j-

-- JL -L. — \

•H O

:Oi't vOns

—

*w< ^

O

O

——

------

*— O J . 9 i .

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

O t: C-i

193

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

195

ort tons

-C

Ll

c-u

C OO

-redact ion I'lllions Oj

o--£X *

0.

^^ +

y

^

-

‘

198 8 pGduct ion *•*111ion. oi 10*0 ---

.or

on,

TeaAct-on

(•-N

0 #G

*^

W -

—I"

J-

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

200

OOL

o \>

~

O

U

i

u. X

Oils o

-

*r,'

•0

r\ ♦^

•^

•5 X*(Ji-i.d.Cu 1

1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

" 7V • -- u

'J-

201

-'j?o&uot ion — illions of aliort t on a

ic.o--

c o.or — 7.0;

j 1 ----■!-o ...•